Business Entity Draft Bill Improves Company Data Accuracy

The government, through the Ministry of Law, will soon issue a Draft Bill on Business Entities (“Draft Bill”). Director of Business Entities at the Directorate-General of General Legal Administration (“Directorate-General”), Andi Taletting Langi explained that this legal instrument will harmonize a number of laws, including Law No. 40 of 2007 on Limited Liability Companies (“PT”), as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 40/2022”).

“One of the points that we emphasize is taken from Article 10 of the Limited Liability Company Law on the authority of the Minister/Director-General to reject applications and approvals if the implementation of the data listed is incorrect,” Andi told Hukumonline.

Directorate-General has also begun to implement substantive verification to ensure the validity of Limited Liability Company legal entity data recorded in the Legal Entity Administration System (“SABH”). This effort is to maintain the transparency and accuracy of legal entity data in Indonesia, particularly regarding changes in the data of board of directors and board of commissioners, changes in share transfer data, and changes in shareholder names.

“Currently, the progress of the Draft Bill is already on the minister's desk,” he added.